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sub-contracting with Excise duty..?

Hi all

can anybody explain me the sub-contracting process with excise duty ,

How to capture and post the excise for sub-contracting scenario.

Becas here we not going to procure material, only job work (Services).

Please explain me with example ..

Regards

sap-mm

Former Member
replied

Subcontracting Process

Subcontracting without Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.

Subcontracting under Full Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)

Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr

Master Data

MM01- Material Masters for Components and FG

XK01 - Vendor Master (Subcontractor)

CS01 - BOM for FG

ME11 - Purchase Inforecord for Subcontracting

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